The Fund is aiming to provide primarily mezzanine structured growth capital to cash-generating, expansion-stage SMEs in Central America (El Salvador, Costa Rica, Honduras, Nicaragua, Panama, Guatemala) and the Dominican Republic and Colombia. The Fund expects to invest on average USD 6m in ten to twelve companies, primarily through mezzanine loans but also by taking controlling equity stakes in established businesses.
The Fund is expected to have a high development impact by addressing the lack of growth capital for SMEs in target countries, which is vital for employment preservation and economic resilience. The Fund Manager has demonstrated over two decades its ability to adapt the private equity model to Central America to fill the SME financing gap in the region.
The investment will contribute to the United Nations Sustainable Development Goals (SDGs) 8 (decent work), 9 (industry, innovation, infrastructure) and 17 (partnerships), but will also empower women and support gender equality (SDG 5).